Online Gambling Company Calls Off Purchase of Atlantic City Casino-Hotel
By David Madden
ATLANTIC CITY, N.J. (CBS) -- The proposed sale of an Atlantic City casino to an Internet gambling company has been called off.
The Rational Group, a Texas-based company, is the parent firm behind "Poker Stars" and had signed an agreement in January to purchase the Atlantic Club (see related story), hoping to tap in on plans to allow for Internet gaming within New Jersey (another related story).
What led to the sudden change of heart is not clear.
Atlantic Club CEO Michael Frawley issued a statement confirming that the sale was "terminated in accordance with its terms."
Operations at the hotel-casino are not affected.
For their part, state regulators insist this decision is strictly between the two private companies: the state has no part in it.
But the fact is that "Poker Stars" has had past dealings with the feds over Internet gaming that cost the company more than a half-billion dollars in fines and restitution.
